NY AG James Slams Unfair Capital One Settlement

New York – In a bold move to protect the interests of Capital One customers, Attorney General Letitia James has led a bipartisan coalition against an unfair settlement. The proposed deal would leave millions in unpaid interest with the bank, despite cheating its customers out of billions.

In May, AG James sued Capital One for a bait-and-switch scheme involving its 360 Savings accounts, misleading customers about promised interest rates. Today, she and 17 other states filed an amicus brief opposing the separate class action settlement that they argue would shortchange these customers.

Capital One had marketed its 360 Savings accounts as top-tier interest earners. However, as Attorney General James pointed out, Capital One artificially kept rates low while simultaneously offering a nearly identical account, ‘360 Performance Savings,’ with significantly higher rates. This allowed the bank to mislead and underpay its customers, keeping billions in unpaid interest.

The proposed settlement only offers $125 million in additional interest to 360 Savings account holders. Yet, this pales in comparison to the over $2 billion Capital One has held back. AG James argues that the settlement fails to require Capital One to change its deceptive practices and would not make up for the losses.

“Capital One customers worked hard for their savings, only to be misled and cheated,” said Attorney General James. “We are fighting this unfair settlement so that justice is served and fair restitution is provided to those who were defrauded.”

The coalition is urging the court to reject the proposed settlement, emphasizing the need to hold Capital One accountable for its deceptive practices and ensuring customers receive proper compensation.

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